France approves emergency loan of 5 billion euros for Renault
The French government said on Tuesday it had signed a state-guaranteed loan of five billion euros ($ 5.6 billion) for automaker Renault, where the coronavirus crisis has exacerbated months of turmoil in management and prompted the company to lay off nearly 15,000 people worldwide.
Finance Minister Bruno Le Maire approved the loan after a meeting with executives, labor representatives and local officials concerned by a radical overhaul unveiled by Renault last week, the Ministry of Finance mentionned.
The government announced the loan last month, but said it was conditional on a commitment by Renault to keep jobs and basic activities in France.
The company said four production sites in France could be closed or restructured, including the Maubeuge site in northern France, from where production of Kangoo electric utility vans is moved to nearby Douai.
This prompted thousands of people in the city to demonstrate over the weekend.
The Mayor “asked that discussions begin immediately with the unions on the implementation of an industrial project of the future … which should guarantee in the long term, beyond 2023, employment and industrial operations in Maubeuge, “the ministry said.
“No decision will be taken on the relocation of activities without the approval of all parties,” he said.
Renault has pledged to cut costs by two billion euros as it tries to regain its financial footing after sales in its main French market fell 89% in April, reflecting plant and plant closures. dealers around the world.
President Emmanuel Macron also pledged an eight billion euro plan to revive France automobile industry by making it the European leader in electric car, including subsidies for the purchase of new cars.
In February, Renault unveiled its first annual loss in a decade, following the arrest of former CEO Carlos Ghosn in Japan in 2018 for alleged financial misconduct at his partner Nissan, of which Ghosn was chairman.
Since his ouster, former Michelin boss Jean-Dominique Senard has taken over the presidency of Renault, and former Volkswagen boss Luca de Meo will join him in July.
© 2020 AFP
Quote: France approves an emergency loan of five billion euros for Renault (2020, June 2) recovered on May 14, 2021 at https://techxplore.com/news/2020-06-france-billion-euro-emergency -loan.html
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